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A million Dominicans not paying for their electricity
posted on: Dec 17 2010 8:22 by The Reporter. Viewed 1005 times.
Executive Vice President of the Dominican Corporation of State Electrical Companies (CDEEE), Celso Marranzini reflected that 2010 was a year of great achievements in the electricity sector, but he was concerned that there are still a million Dominicans who do not pay for their electricity service.
Why are a million Dominicans who receive electricity in their homes not paying? A leading Dominican newspaper asked the managers of the three electricity distributors: Marcelo Silva (Edesur), Eduardo Saavedra (Edenorte) and Francisco Leiva (Edeeste), as part of the presentation of the electricity sector results for 2010.
None of the companies admitted to the fact that the problem is related to weaknesses in management, but rather, suggested it was down to lack of investment in the distribution networks. Edeeste declined to respond.
As part of the event, organized by the CDEEE, Marranzini reported that the institute's management of the operating expenses has seen a saving of US$30 million from November last year when it was US$ 70 million down this year to US$ 39.5 million.
He said that through the control of the payroll there were savings of US$ 27 million, from US$ 50.8 million in November 2009 down to US$ 24.1 million in the same month of 2010, a figure that was matched by a reduction in contracts advice in 89.5% and a significant reduction in telephone costs, in purchases and energy consumption.
Guests
The event was attended Victor Ventura, from the Dominican Hydroelectric Generation Company (EGEHID), and Julian Santana Araujo, of the Dominican Electrical Transmission Company (EGEHID).
Saavedra Pizarro, from Edenorte, said that there is a paradigm in the sense that the population culturally assumes that electricity is a public good and they should not necessarily be required to pay for it.
The second aspect that causes the non-payment of supply, according to Saavedra Pizarro has to do with lack of investment suffered by the electricity sector in the distribution networks. In some cases, he said, the distances are too far to travel to attend clients, particularly in its concession area, especially in the Northeast.
It also found that there are difficulties in the quality of measurement. He said of around one million families in the Cibao only 600 000 are registered as their clients and just over 400 000 have a meter.
"Therefore, as companies we have to elaborate and implement the strategy, methods and procedures of companies. We must address the social aspect, to teach customers the importance of paying their electricity bill, because the end result is the population's budget that is harmed, because there are fewer resources for health, housing and education, "he said.
Marcelo Silva, Edesur referred to the theft of electricity and so-called "market discipline" which he defined as a way of behaving. He understood that battling losses is a technical matter and he felt the need to set up secure networks is a matter of commercial interest which means management and payment facilities, but also legal action for those who break the law and thereby making punitive if appropriate, but also install a culture of payment, which must be a national campaign.
"Right now we are in a situation where compared to other realities, there is a very strong degree of permissiveness and there are important social sanctions for crimes of theft of electricity; and that is something that we need to teach and improve the performance of the population in this regard," he said.
Francisco Leiva, from Edeeste, did not answer the question, but said his was the company with the least investment made in the networks over the years despite having the greatest burden of neighborhoods whose residents do not pay.
State industry leaders meeting with the media to report on indicators at the end of the year is a way to be accountable and jointly advance the main performances of companies in 2011. CDEEE acknowledged the contributions from the EGEHID generation, which at year end will amount to 1416 gigawatt hours per year, equivalent to a net savings of 3.16 million barrels of petroleum, worth an estimated US$ 240 million.
ETED highlighted the performance, which in 2010 built ten lines of high voltage transmission and increased its fees in 53.4%, going from RD$ 1614 million to RD$ 2475.3 million at the end of 2010.
He explained that both companies have major projects for 2011, on the one hand, contributing to increased energy production and, on the another, expanding the power transmission.
WHO'S WHO? THREE EDES MANAGERS EXPOSED THEIR PLANS FOR 2011
MARCELO SIVA: Edesur has five key projects for the coming year, which will impact on 139.300 customers, amounting to U.S. $ 56.3 million and will be linked to upgrading of networks, telemetry, substation construction, among others.
EDUARDO SAAVEDRA: Edenorte's investment next year will reach U.S. $ 61.0 million for upgrading of networks in 11 stages in the Cienfuegos area of Santiago, and four stages in the Hato del Yaque sector. This will reduce costs by US$ 9.0 million.
LEIVA FRANCISCO: The Edeeste investment will reach U.S. $ 6.3 million for network improvement projects in neighborhoods LasTablitas, San Bartolo, La Ureña, as well as Las Flores, Pedro J. Carrion and Felipinas. It currently suffers the largest losses.
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